Significance of Housing Energy Efficiency in Lombardy's Real Estate Market

The focus on energy efficiency in Lombardy's real estate sector, particularly in Milan, is growing. Previously seen as a mere formality, a property's energy rating now directly influences its pricing, speed of sale, and buyer interest.

The recent Real Estate DATA HUB report, compiled by the RE/MAX Italia research center in partnership with RYZE and 24MAX, reveals a significant rise in the sale of highly energy-efficient homes (classes A and B) in Italy, with a growth of over 25% in the past two years. These properties command prices around 40% higher than less efficient ones and sell almost 8% faster.

Lombardy: Surge in Demand for Energy-Efficient Homes

This trend is particularly evident in Lombardy, with class A and B properties making up 16% of the market, while sales of low-energy homes (classes E, F, and G) decreased from 66% to 64%. The class C and D segment remains steady at 20%, signaling a shift towards more modern and energy-efficient housing.

Three-bedroom apartments are the most sought-after, representing 48.35% of transactions, followed by two-bedroom units at 31.72% and four-bedroom homes at 14.45%. One-bedroom apartments are less favored, accounting for only 2.66% of the market, as buyers prioritize spacious, functional, and energy-efficient properties.

Milan: Demand for Two-Bedroom Apartments and Stable Prices

In Milan, the market landscape is evolving, with a rise in class C and D transactions from 21% to 26%, while sales of classes E, F, and G properties dropped to 66%. The average price per square meter remained steady at €4,587, but two-bedroom apartment prices surged from €4,569 to €5,170 per square meter, reflecting sustained interest from buyers and investors. Properties in Milan typically sell within 97 days, highlighting robust market activity.

Urban Development Drives Demand

Buyers are drawn to areas with urban revitalization projects and improved transportation links, seeking new or renovated homes with high energy efficiency ratings. Such properties are viewed as long-term investments that can preserve their value over time.

Evolving Home Selection Criteria

Experts emphasize that these shifts indicate not just technological advancements but changing consumer preferences. Dario Castigli, CEO of RE/MAX Italia, notes the increasing importance of energy efficiency in home selection, warning owners of older properties that without upgrades, their homes may lose appeal and competitiveness in the market.